07-14-2009 CC RPT 39 - Laserfiche WebLink

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Redevelopment Agency 01 Memorandum TO: HONORABLE MAYOR AND AGENCY MEMBERS DATE: July 14, 2009 FROM: DEVELOPMENT DEPARTMENT ITEM NO: 39 WARDS: ALL SUBJECT: PROPOSED RESOLUTION FINDING THAT FISCAL YEAR 2009-2010 PLANNING AND ADMINISTRATIVE COSTS TO BE FUNDED FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUNDS ARE NECESSARY FOR THE PRODUCTION, IMPROVEMENT OR PRESERVATION OF LOW- AND MODERATE-INCOME HOUSING IN THE CITY OF RIVERSIDE ISSUE The issue before the Redevelopment Agency is whether to approve the attached Resolution of findings for the Fiscal Year 2009-2010 planning and administrative costs that are to be paid from low- and moderate-income housing funds. RECOMMENDATION That the Redevelopment Agency approve the attached Resolution (Exhibit "A") finding that the planning and administrative expenses are necessary for the production, improvement or preservation of low- and moderate-income housing. BACKGROUND In accordance with the State Health and Safety Code Section 33334.3 (d), redevelopment agencies may use a portion of moneys from their low- and moderate-income housing funds to provide planning and general administrative costs. To do so, agencies must determine annually that the planning and administrative expenses are necessary for the production, improvement or preservation of low- and moderate-income housing, and must ensure that the amount spent is not disproportionate to the amounts budgeted for the cost of production, improvement or preservation of that housing. The Agency will receive approximately $10,719,542 in tax increment revenue for low and moderate income housing in Fiscal Year 2009-2010. Of this amount, $1,379,447 is budgeted for planning and general administration costs. Further, the Agency will carry over a budget of approximately $14,474,898 for projects previously approved for low- and moderate-income housing. The administrative budget represents approximately 5.5% of the total funding and it is requested that the Redevelopment Agency find that these expenses are necessary and not disproportionate to the costs of producing, improving and preserving housing. FISCAL IMPACT There is no impact to the General Fund. The findings provided in the Resolution are necessary for the Agency to continue to pay for a portion of its operating expenses from housing funds. 39-1